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Saudi Construction Sector Poised for 5.1% Annual Growth by 2028

Saudi Arabia’s construction sector is expected to grow at an annual average rate of 5.1% between 2025 and 2028, driven by significant public and private investments in oil and gas projects, according to Research and Markets, a key data firm.

In May 2024, Saudi Aramco, the state-owned petroleum and natural gas company, announced plans to launch 99 projects between 2024 and 2026. These initiatives aim to boost oil and gas output, enhance treatment capacity, and modernize facilities, according to the company’s Q2 2024 report.

The projects include 58 oil, gas, and petrochemicals developments, 22 pipeline and distribution projects, and 19 civil and marine infrastructure projects. Some specific undertakings include the Marjan Field Gas Lift Program, Shaybah Dry Gas Handling, and upgrades to the sulphur recovery units and Ras Tanura refinery.

Research and Markets also noted that major investments will focus on developing three liquids-to-chemicals (LTC) complexes at the Yasref, Samref, and Sasref refineries.

In 2024, the Saudi construction industry is expected to grow by 4.6% in real terms, supported by investments across energy, tourism, and industrial sectors.

As of June 2024, Saudi Arabia has 255 tourism infrastructure projects valued at SAR 6.4 trillion ($1.7 trillion), part of its Vision 2030 strategy aimed at attracting 150 million tourists annually.

Additionally, the Saudi Central Bank (SAMA) reported that credit facilities provided to micro, small, and medium enterprises (MSMEs) grew by 18.6% year-on-year in 2023, following an annual growth of 13.6% in 2022.

As part of the National Investment Strategy (NIS), the Saudi government is focusing on enhancing the investment climate and increasing foreign direct investment (FDI). The plan aims to expand the number of industrial establishments in the Kingdom from 8,800 in 2019 to 36,000 by 2035.

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